Transocean Inc. says that the ultra-deepwater semisubmersible Deepwater Nautilus has been awarded a minimum three-year contract extension commencing in December 2008 by a subsidiary of Royal Dutch Shell plc.

Under the terms of the amendment extending the term of the drilling contract, Shell has the right to elect, by June 30, 2008, to extend the contract by an additional year, to a total of four years. Estimated contract revenues that could be generated over the three-year or four-year (if elected) extension periods are approximately $586 million or $759 million, respectively. Estimated contract revenues represent the maximum amount of revenues that may be earned in the applicable contract period, excluding revenues for mobilization, demobilization and cost escalations.

The Deepwater Nautilus is one of 39 High-Specification Floaters in the Transocean fleet, 18 of which are Ultra-Deepwater Floaters. The rig, which entered service in 2000, is capable of operating in water depths of up to 8,000 feet, or greater if a pre-set mooring system is used.

Tags: Shell, Transocean Inc.